1. Insure against risk

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If you can become debt-free, build up short-term and long-term savings and buy your own home, then congratulations are in order. You are better off than roughly 98% of the people in the world. Your final challenge, then, is to make sure you stay that way. So be aware of the catastrophes that can bring you down.

-If you get hurt, you can’t work. And if you can’t work you can’t earn. So if you don’t have disability insurance through your employer (short-term and long-term), look into buying some.

-If you have a wife and kids and they depend on your income and you die, they’re going to be up a creek. So make sure you have adequate life insurance.

-If you need a car to get to work and you total it, then you’re going to need another car. So make sure you have enough car insurance. (If you have a car loan, there are usually minimum amounts of car insurance that you’ll have to get. But if your car is paid for, you’ll need to make sure you have comprehensive coverage).

Insurance is another “not so fun” thing to spend money on. And we all love to spend money on things that are fun. That’s called financial freedom and we all want to get there. Follow these five steps, and you’ll get there.